When a company decides to discontinue an operation, it values the assets and liabilities of that operation at ________ if this amount is lower than the carrying value.
A) gross book value (historical cost)
B) net book value (historical cost less accumulated depreciation)
C) fair value
D) fair value less selling costs

Question

Quizplus · Accepted Answer

When discontinuing an operation, a company values the assets and liabilities at "fair value less selling costs" if this amount is lower than the carrying value, to reflect the net realizable value.

When a Company Decides to Discontinue an Operation, It Values